Some people find it amusing the hordes of chinese out conquering germany with their cameras. But some of these visitors have their eye on very specific Things Technology and machines made in germany and theyre not here for the perfect souvenir snapshot china has come to shop and its buying up dozens of German Companies. The mice not just of our acquisitions are associated with Strategic Interests you should press a china wants to shake its image as a producer of cheap goods and become a leader in Global Markets in just one year it invested more than ten billion euros in germany. Im just going to invest in germany in this its a win win situation as i know we. Win win what about job security. Sly fox the initial reaction is shock. Some experts fear for the domestic economy but serious inquiry city that planners discipline Farm Products with chinese words. Soon wants to know how dangerous it is chinas shopping spree for germany. I think i think i think but i think the big thing you tang is a chinese millionaire but hes here in karlsruhe on business. A leading global manufacturer of packing and process technology is looking for a new investor several parties from both germany and abroad have already come to look at the production facilities today its you tongue whos offered the company one hundred fifty Million Euros and sweetened the deal by ensuring that in the future would be able to sell its machines in asia without difficulties. For the german management this all sounds promising but the companys employees are skeptical because toms company talking manufactures similar machines in china the news of potential Chinese Investment has employees concerned. Shockey havent the first reaction is. China is far away about the mentality that its difference they have to hunt is about working out as so it sort of takes that moment as a large part of the workforce sees it pragmatically shaft. Guns as a high third time weve become sellers if its on the take off a call for this time however the biggest fear is that with this sale. The entire production will be relocated to china. There was another development. Wouldnt be so great for us of course if production were moved elsewhere. But i can go maybe we can also learn something from the china office but. Investor tongue ensures them hes not out to destroy roma co he wants to team up with the manufacturer in karlsruhe to overtake competitors such as bosh to the. Teams china is a huge market and germany is highly developed scientifically and technologically us working together chinese and German Companies could conquer the Global Markets. So we have a three year plan for we want to increase from a cos market share in china hold on change to this. So right now the annual turnover there is only five to six million euro. That doesnt photos of the box entry yet as it should be much more woman to our goal is over fifty million euro for that. But then roma cole would be part of a Chinese Corporation and that would mean in the future major decisions would be made by chinese investors a good reason for the german management to weigh up the situation carefully. You know. A lot at stake in the negotiations between. Well come back to find out what kind of agreement was reached. Just one of Many Companies chinese investors have shown interest in. Companies in germany. Changed hands. In business with china. And sometimes even. Twenty seventeen was a record year for chinese amodeo activities abroad and also in europe and germany and. Were seeing a solid upward trend most of the acquisitions we handled pursue Strategic Interests or you should visit us in other words a chinese entrepreneur will say i have an objective i want to expand abroad or i need to upgrade my technology. And upgrade for my intention again back home why are chinas investors so keen on germany in particular yeah. For. The german products and German Technology a highly regarded. As of yet been is in Automobile IndustryMechanical Engineering and machinery structure machine or have an excellent reputation in china the good news in the whole school for one reason germany has become a focus of interest is because of a government scheme known as made in china twenty twenty five the country wants to put its days as a producer of cheap goods behind it to become a technological leader and industrial superpower. At the hanover messa the Worlds Largest industrial trade fair its clear where chinas interests lie robotics Semiconductor Technology and automation. Up until now Chinese Companies often simply copied products no one does it better no other country churns out more reproductions or counterfeit goods. The cost to germany alone is over seven point three billion euros. The Company Based in the bavarian city of playing and back has felt the sting the cusp eshel ises in pressure temperature and Level Measurement Technology their instruments are used primarily. Heating and Industrial Facilities and must operate with absolute precision. Make up products have been widely company by Chinese Companies for eleven years its been bullish dame woods job to track down the fakes. So whats original and whats her fake you know all in all the difference between an original and a fake is not always easy to spot for the retail customer often on fakes the printed parts are a bit blurred the cascade is even worse my care at the front has been cut by hand perhaps with a pair of nail scissors and theres no way this seal is tight enough the main thing is that it wont measure the pressure properly subjected to vibration the instrument would likely fail fun even if its time to made in germany but wasnt and it does not adhere to the quality standards of made in germany thats not fair. Its a tough battle for de mood and his boss so why is china in particular causing so many problems. You know its. Over the past years china has grown from a developing country into an industrialized one and a lot of Small Companies want to gain a foothold in the market. And then they often take a very pragmatic approach to put a diplomatic its. The economic damage is significant but for this Medium Sized Company theres even more at stake is the well just imagine our instruments are often used for critical applications involving hard pressure for example. Under for devices and up to specs it could result in serious damage or even personal injury and through it all of the work. And if there were to involve a device bearing the name. Doesnt matter how many ways we can prove that its not one of our products the damage to our him. Invented in germany and reproduced cheaply in china under the original name that shouldnt be possible in germany intellectual property is protected by the German Patent Office in munich but patents in germany arent worth much in china they have to be registered there and the requirements are different in germany inventions must truly be new in china its often enough for the goods to simply be new to the market that leaves room to patent blatant. Is that also part of the chinese strategy attorney usually involves counterfeiters on behalf of German Companies which takes a lot of time and energy. And china you have to submit a lot of paperwork before a. Very broad strategy. Any other. Property rights in china are responsible for your kind. Of the Property Rights will ultimately help you win that case. Does go to court. And his client Chinese Companies generally win. The impression the state is interested in supporting its own patents. China launched a Major Initiative a few years ago they wanted to see millions of peytons filed within a few unfortunately the innovations. On the standards here differ from those in europe and the Chinese Companies sometimes with tax advantages. And then parse them through. I want to know if its china first in case law. Its more like you realize theres a tendency to mistrust foreigners they always have to present their. The thing to the chinese judge with a triple stamp and a certified translation its a lot easier for the chinese these hurdles are purely formalities which of course have been set up by the state. Are german businesses systematically disadvantaged and working to find out and make our way to china the country is germanys most important Business Partner outside europe with a trade volume of about one hundred seventy billion euro more than two thousand six hundred German Companies are based in the greater Shanghai Area alone but if you hope to succeed you have to abide by chinese rules and they are strict foreigners are not allowed to invest in every branch for some you need to enter into a joint venture with chinese partners and there are limits to how much capital can flow in and out of the country. A third of german entrepreneurs complain about a lack of transparency bureaucratic hurdles and bias and legal interpretations. Of the German Chamber of commerce abroad is critical of the systematic bias to. Trying to germany as a country that is not actually open to Foreign Investment but we are still seeing limited Market Access in china before in the case of copulating tenders for example the Companies Keep telling us that there is a lack of transparency and that it is not always easy to understand why theyve been shut out of the process and spike jonze few desu my time is not quite seen cohen but tends to be a little complicated here in china i list here in kenya and its guns i am from. Many companies would agree but few dare to talk openly about the problems for fear of reprisals by the chinese authorities but we did find one entrepreneur who was willing to talk to us on camera thank you heiko Ventures Company develop scanners thomas. And measuring instruments for industrial use eleven years ago she came to china and taught chinese engineers german know how then one of her employees started offering the same services outside Company Hours with the help of colleagues and equipment from their german employer. Or through the spectacle they dont like to say respect for property as we do that i dont have the same sense of justice so i more or less have to expect that one in one hundred employees will say well ill take that and do my own thing with it and i guess the government Officials Say what security measures have you put in place to ensure that the no house stays within a company in india from our clients would fill in for us its very important not to reveal every facet of our technical knowhow to ensure that didnt happen right for a start we continue to manufacture the least sensitive parts in germany and then have them sent here thats been stalled in the machine and were heading for the partly russian. Ventile dismissed the employee. But thats not the only bad experience shes had she also set up a joint venture with a chinese partner who made a profit while she lost half a Million Euros recently switching from. The six i mocked as a mild case in which she or peons operate and it works quite well and theres a market that is reserved for domestic manufacturers its is not just the your opponent so we thought it would be a good idea to enter into a joint venture with a partner from china to a venture partner of kenya that does not allow us to conquer this other market as well. One that didnt work out so well it was very very difficult wills colliding you might say its the subject of the profit from its difficult for germans to succeed in china ventile experience is that every day applications and paperwork are required for everything nothing moves forward without a stamp and a. Get that pencil have to present her case to three different authorities. Position because then its worth more than my signature ok. Time and again she feels the long arm of the state she wants to show us how it is we accompany her to one of the authorities a combination of a customs and labor inspectorate she needs its approval to bring components from her own factory into the country. The head of the authority also wants to show German Television what they have achieved here hes proud that in just ten years more than twelve hundred companies have settled in the region of his responsibility they are all in sectors that the Chinese Government sees as crucial to the countrys future engineering Semiconductor Technology and automation. We ask the head of the agency what the Broader Vision is the. Government has created many opportunities to transform and improve chinas economy to develop it we are trying to move away from the traditional way of doing business with towards a new economy driven by innovation and high tech and very strange offers many opportunities for foreign entrepreneurs to especially from germany this is what you could. Thank you very much for making makes it clear and nothing in china happens by chance. Master plan for Economic Development is always present. Made in china twenty twenty five envisions a quantum shift away from cheap producer to an industrial super power that will rival north america and europe. For investment. Companies cant make the. Own they have to buy. The company was on the brink of bankruptcy. And then. Suddenly. An investor from china appeared on the scene and took over the company the money from china kept the company afloat. In german hands. Running the business to his german. And the chinese. He made a name for himself as an automotive supplier he had nothing to do with cranes. Prevention regional strategy was behind his investment. Serves a prime market. Intended for the european market. China. Will receive support from the chinese. Government. To develop production in china and make the brand. With their governments developing strategy. So this investment was made with support from the state. He doesnt reveal the exact amount but without that money vill bet would have gone bust but in another respect it cost the company dearly because the way germany builds cranes is now also known in china. Technology transfers and state subsidized shopping sprees what does this mean for germany as a Business Location experts merits institute for china studies spent a long time looking at chinas master plan and working out the strategy behind it. Has analyzed numerous Chinese Company takeovers including starter motor and generator subsidiary the chinese investors are actually made up of a complex network with locations in germany luxembourg and the Cayman Islands and in the end everything comes together in a special holding company. If you look at the Chinese Business register. Holding companies own. Entirely by henan province which is a very very clear indication of the provincial plan for the Automotive Industry the. State owned enterprises have. Another example n. X. P. Semiconductors in hamburg the buyer appeared to be a private investor but a look into numerous Shell Companies reveals a state fun directly subordinate to the council of state so not a private investor after all. Trying to give the impression that this is a private plan when the governments actually behind it that if you have nothing to hide theres no reason not to say that the government is involved. Its a controversial strategy. Thinks it has to do with germany as a Business Location. Is germany being sold off little by little as the. Deed risks that we have to observe in this travel an increasing proportion of investment is driven by state participants to. Basic aim is to supplant foreign products with chinese ones. To prevent this takeovers would have to be blocked until recently the German Government could only do that when it came to armaments and military technology but since july twenty seven teams the government has been able to veto deals if Critical Infrastructure is affected the e. U. Is now considering expanding the rule to the whole of europe the numerous Company Takeovers the bad experiences with patents the hidden hand of the state and the made in china twenty twenty five initiative all of this has fueled mistrust we want to confront chinas highest ranking representative in germany with our research. Given the pace of china. His masterplan can ambassadorship understand why dismisses and politicians are wary. In the past the motto was growth for growth and more growth you know the motto was more quality and efficiency instead of quantity. Were only at the start of our investment in germany its a win win situation. In the in by taking over companies weve created more jobs and these companies now have more access to the Chinese Market. So people are afraid of Chinese Companies but in essence